Cato Corporation (CATO)vsLululemon Athletica Inc. (LULU)
CATO
Cato Corporation
$2.77
-5.14%
CONSUMER CYCLICAL · Cap: $69.04M
LULU
Lululemon Athletica Inc.
$158.72
-1.39%
CONSUMER CYCLICAL · Cap: $18.62B
Smart Verdict
WallStSmart Research — data-driven comparison
Lululemon Athletica Inc. generates 1606% more annual revenue ($11.10B vs $650.83M). LULU leads profitability with a 14.2% profit margin vs -2.9%. LULU appears more attractively valued with a PEG of 0.90. LULU earns a higher WallStSmart Score of 65/100 (B-).
CATO
Buy53
out of 100
Grade: C-
LULU
Strong Buy65
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CATO.
Margin of Safety
-95.2%
Fair Value
$90.10
Current Price
$158.72
$68.62 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Earnings expanding 63.3% YoY
Attractively priced relative to earnings
Every $100 of equity generates 34 in profit
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Strong operational efficiency at 22.3%
Areas to Watch
4.7% revenue growth
Smaller company, higher risk/reward
Operating margin of 2.9%
ROE of -10.3% — below average capital efficiency
0.8% revenue growth
Weak financial health signals
Earnings declined 18.5%
Comparative Analysis Report
WallStSmart ResearchBull Case : CATO
The strongest argument for CATO centers on Price/Book, EPS Growth. PEG of 1.17 suggests the stock is reasonably priced for its growth.
Bull Case : LULU
The strongest argument for LULU centers on P/E Ratio, Return on Equity, Altman Z-Score. PEG of 0.90 suggests the stock is reasonably priced for its growth.
Bear Case : CATO
The primary concerns for CATO are Revenue Growth, Market Cap, Operating Margin.
Bear Case : LULU
The primary concerns for LULU are Revenue Growth, Piotroski F-Score, EPS Growth.
Key Dynamics to Monitor
CATO profiles as a turnaround stock while LULU is a value play — different risk/reward profiles.
LULU carries more volatility with a beta of 1.01 — expect wider price swings.
CATO is growing revenue faster at 4.7% — sustainability is the question.
LULU generates stronger free cash flow (960M), providing more financial flexibility.
Bottom Line
LULU scores higher overall (65/100 vs 53/100). Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Cato Corporation
CONSUMER CYCLICAL · APPAREL RETAIL · USA
The Cato Corporation is a specialty clothing and fashion accessories retailer primarily in the southeastern United States. The company is headquartered in Charlotte, North Carolina.
Lululemon Athletica Inc.
CONSUMER CYCLICAL · APPAREL RETAIL · USA
lululemon athletica inc. The company is headquartered in Vancouver, Canada.
Visit Website →Compare with Other APPAREL RETAIL Stocks
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